Counties consider petrol tax unfair

Press, Volume CXI, Issue 32783, 7 December 1971, Page 18

Counties consider petrol tax unfair

“We are quite convinced that we are well down the drain with this one,” said Mr W. E. Walker (Ellesmere County) on the effect of the petroleum tax, at a meeting of representatives of counties in the Christchurch tax region yesterday.

Mr Walker said the tax was unfair; there were many ratepayers in his county who already had paid more in tax on diesel than they would have had to pay if the council had increased the rates to collect the amount expected from the petroleum tax. The tax onl diesel was 1.5 c per gallon, but because of freight, the price actually had increased more than

that, he said. Nowhere in the county could it be found for less than 2c a gallon above the price before the tax was imposed.

The revenue was not as good as they thought it was going to be, said Mr Walker. Mr C. O. Redfern (Malvern County) said he wondered whether the seven counties in the Christchurch tax region were getting as great a share of the tax as other local bodies with lesser areas. “It does occur to me that some counties in the adjoining region may be getting a greater share than we do because we are with Christchurch city,” said Mr Redfern. The secretary (Mr A. Kelly,. Paparua) said he had been given the impression that counties in the North Canterbury region were in a better position than counties in the Christchurch region. However, analysis showed that, on capital valuations, the tax income was close in both regions. It was unlikely that his council would be able to bold rates during the next year, said Mr Walker. He asked how this would affect the allocation of the income, and how other councils would be affected if the Christchurch City Council decided to increase rates to cover the cost of Commonwealth Games facilities.

Any change in the rate would necessitate alteration to the allocation, said Mr Kelly. Because of their high capital value, urban areas with'drainage rates were at an advantage over rural areas for tax allocation purposes.